Western Digital Corporation (WDC)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	2,114,000	1,879,000	2,023,000	2,327,000	3,370,000
Short-term investments	US$ in thousands	—	—	—	3,000	1,586,000
Receivables	US$ in thousands	1,840,000	2,166,000	1,598,000	2,804,000	2,257,000
Total current liabilities	US$ in thousands	5,418,000	6,087,000	5,434,000	4,557,000	4,870,000
Quick ratio		0.73	0.66	0.67	1.13	1.48

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,114,000K + $—K + $1,840,000K) ÷ $5,418,000K
= 0.73

The quick ratio of Western Digital Corporation demonstrates a declining trend over the specified period from June 30, 2021, through June 30, 2025. Specifically, the quick ratio decreased from 1.48 in 2021 to 1.13 in 2022, indicating a reduction in the company's ability to meet its short-term obligations with its most liquid assets. This downward movement continues into 2023 and 2024, with the ratio declining further to 0.67 and 0.66, respectively. The ratio then shows a slight improvement in 2025, rising marginally to 0.73.

Throughout this timeframe, the ratios suggest that Western Digital's liquidity position has weakened notably since 2021, transitioning from comfortably exceeding one to a position below 1.0, which indicates that the company's quick assets are no longer sufficient to cover its current liabilities without relying on inventory or other less liquid assets. The slight recovery in 2025 does not fully offset the earlier decline, reflecting continued challenges in liquidity management or changes in the composition of liquid assets relative to current liabilities.

Overall, the trend implies a deteriorating liquidity profile over the years, with the company moving from a relatively strong short-term liquidity position to a more strained position by 2024, with a modest improvement observed subsequently.